Question 1: Which term refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future?
- stock option
- gainsharing plan
- multiplier method
- at-risk variable plan
Question 2: Which of the following terms refers to benefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay?
- supplemental pay benefits
- employee assistance
- financial incentives
- merit pay
Question 3: According to research, which of the following has a significant impact on employee engagement?
- performance reviews
- variable pay plans
- job design
- awards
Question 4: High-performance work systems typically use competency-based pay because employees ________.
- participate in training and development workshops
- receive frequent performance appraisals
- rotate among different jobs
- need technical skills
Question 5: Which of the following is a discretionary benefit?
- unemployment insurance
- disability insurance
- FMLA leaves
- Social Security
Question 6: Which term refers to an incentive plan in which a person is paid a sum for each item sold, with a strict proportionality between results and rewards regardless of output?
- standard merit pay
- straight hourly pay
- straight piecework
- variable pay
Question 7: What is the primary disadvantage of using the straight salary approach to pay salespeople?
- relying on annual profits
- discouraging staff loyalty
- preventing territory changes
- failing to link effort with reward
Question 8: Unions typically negotiate all of the following issues EXCEPT ________.
- wage rates
- income security
- time off with pay
- unpaid medical leave
Question 9: ________ is a formal and systematic comparison of jobs to determine the worth of one job relative to another.
- Job analysis
- Job evaluation
- Job description
- Job classification
Question 10: Which law requires time-and-a-half pay for any hours worked over 40 hours per week?
- Title VII
- Davis-Bacon Act
- Fair Labor Standards Act
- Walsh-Healey Public Contract Act
Question 11: Which of the following professions is most likely categorized as nonexempt?
- general manager
- pharmacist
- paralegal
- teacher
Question 12: What is a drawback associated with the ranking method of job evaluation?
- high costs
- subjective aspects
- time-consuming
- highly complex
Question 13: Athena, a sales representative, was terminated from her position at Ross Manufacturing. On Athena's last day of work, she was given a check for $5,000. What did Athena most likely receive from Ross Manufacturing?
- disability pay
- annual bonus
- severance pay
- unemployment insurance
Question 14: Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement. Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?
- Jefferson incentive system
- deferred profit-sharing plan
- gainsharing plan
- cash plan
Question 15: Which term refers to payments a firm makes related to changes in company ownership?
- pension plan
- annual bonus
- golden parachute
- retirement perks
Question 16: Craig was born in 1961. According to the Social Security Act, what is Craig's full retirement age?
Question 17: Which 1931 law allows the secretary of labor to set wage rates for laborers employed by contractors working for the federal government?
- Title VII
- Davis-Bacon Act
- Fair Labor Standards Act
- Walsh-Healey Public Contract Act
Question 18: A straight salary for salespeople is most appropriate when the main tasks involve ________.
- selling technical products
- exceeding sales quotas
- finding new clients
- selling real estate
Question 19: An executive who receives a(n) ________ stock receives units instead of shares of company stock. The units will be equated to cash in the future if appreciation occurs.
- phantom
- restricted
- premium
- nonqualified
Question 20: Furman, an automotive parts manufacturer, employs nearly 800 workers in its Dallas, Texas facility. Furman has always offered its employees health and dental insurance as well as legally required benefits such as unemployment insurance and workers' compensation. Furman's top executives are considering the idea of offering employees a flexible benefits plan. Which of the following, if true, best supports the argument that Furman should offer employees a flexible benefits plan?
- Some Furman employees express interest in vision insurance, while other workers never enroll for dental insurance.
- Furman outsources its employee benefits program, and employees must file claims with the plan's administrator.
- Some Furman employees prefer to build their work days around a core of midday hours rather than work from 9 to 5.
- Furman established a pooled paid leave bank to reduce the number of employee absences